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Ms. Fannie Fancy (your client) found a position in retail sales with the company Aritzia in September, 2019. During the remainder of that year, she

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Ms. Fannie Fancy (your client) found a position in retail sales with the company Aritzia in September, 2019. During the remainder of that year, she had gross employment income of $23000. Prior to 2019, Ms. Fancy had no Earned Income and made no contributions to either an RRSP or a TFSA. Prior to 2019, Ms. Fancy had been supported by and living with her common-law partner. Unfortunately, things did not work out. In the year of separation, Ms. Fancy received a lump-sum payment of $85000, plus a formal agreement involving $1,200 per month in spousal support. The lump- sum payment was deposited in a savings account which earned interest of $12450 during 2019. She received six months of support payments in 2019. Fannie did not contribute to an RRSP during 2019. However, her employer sponsored an RPP to which Fannie contributed $1,200 during 2019. This contribution was matched by a $1,200 contribution by Fannie's employer. In addition to her employment income and interest income, Fannie had the following other sources of income during 2019: Dividends from Canadian public companies of $14000. A net business Ince of $2500 IT mm 2019: Dividends from Canadian public companies of $14000. A net business loss of $3500. An inheritance from an uncle of $220000. For 2019, Ms. Fancy's income places her in the lowest federal income tax bracket. Further, she anticipates that her 2020 income will also be taxed at this rate. However, she has been promised a management position beginning in January, 2020. As such, she remains loyal to Aritzia. This position involves a significant increase in salary and this, combined with her increasingly profitable web-based business, will result in her being in the 26 percent federal income tax bracket. Required: Prepare a brief memo to your client outlining the following: 1. Calculate your client's Net Employment Income for 2019. Show all calculations as your client wants the details. 2. Determine your client's maximum deductible RRSP contribution for 2020. Show all your calculations. 3. Your client mentioned she wants to contribute $10,000 in cho thir wnio As such, she remains loyal to Aritzia. This position involves a significant increase in salary and this, combined with her increasingly profitable web-based business, will result in her being in the 26 percent federal income tax bracket. Required: Prepare a brief memo to your client outlining the following: 1. Calculate your client's Net Employment Income for 2019. Show all calculations as your client wants the details. 2. Determine your client's maximum deductible RRSP contribution for 2020. Show all your calculations. 3. Your client mentioned she wants to contribute $10,000 in 2020. Should she do this? Explain your rationale (hint: no calculations required)

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